Business group

Business group

In business, a group, business group, corporate group, or (sometimes) alliance is most commonly a legal entity that is a type of conglomerate or holding company consisting of a parent company and subsidiaries. Typical examples are Adidas Group or Icelandair Group.

In a less common and more general sense, a business group is a hybrid organizational form between a firm and market. This is typically a cluster of legally distinct firms with a managerial relationship [ [ Business Groups: Between Market and Firm] by James R. Maclean, October 14, 2005. Accessed May 6, 2006.] [ [ Business Groups in Emerging Markets: Paragons or Parasites?] by Tarun Khanna & Yishay Yafeh, August 2005. Abstract accessed May 6, 2006.] . The relationship between the firms in a group may be formal or informalGranovetter, M. (1994). “Business groups,” in "The Handbook of Economic Sociology" (J. N. Smelser and R. Swedberg, Eds.), pp. 453–475, Princeton Univ. Press, Princeton.] . A keiretsu is one type of business group.

The definition of business group varies. For instance, Leff [Leff 1978:663] defines business group as a group of companies that does business in different markets under common administrative or financial control whose members are linked by relations of interpersonal trust on the bases of similar personal ethnic or commercial background a business group.

Encarnation [Encarnation 1989:45] refers to Indian business houses, emphasizing multiple forms of ties among group members. Powell and Smith-Doerr [Smith-Doerr 1994:388] state that a business group is a network of firms that regularly collaborate over a long time period. Granovetter argues that business groups refers to an intermediate level of binding, excluding on the one hand a set of firms bound merely by short-term alliances and on the other a set of firms legally consolidated into a single unit. Williamson [Williamson 1975, 1985] claims that business groups lie between markets and hierarchies. Khanna and Rivkin [Khanna and Rivkin 1999] suggest that business groups are typically not legal constructs though some regulatory bodies have attempted to codify a definition.

ee also

* Business alliance
* Keiretsu


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • British business group — A British Business Group (BBG) is an association or club of expatriate British business people. The aims of the group are typically to encourage trade with the host country and to provide a social environment for business networking. Typically a… …   Wikipedia

  • The IQ Business Group — is a South Africa based company that at one time was the largest unlisted technology company in South Africa. The business was headed up by Johan Roets (SA) together with Chris Sinclair, Patrick Crooks and Ricardo Rosa.The Business has operations …   Wikipedia

  • Electronic Business Group — (EBG) est une association française créée en 1998 par Pierre Reboul et François Henri Pinault. Elle a pour objectif de rassembler les acteurs de l internet, du marketing et du e commerce. L EBG travaille essentiellement sur les thématiques liées… …   Wikipédia en Français

  • Group — can refer to: Sociology * Group action (sociology) * Group behaviour * Groups of people, a description of various different human groups ** Peer group ** Workgroup * Group dynamics * Group (sociology), a sub set of a culture or of a society *… …   Wikipedia

  • Business — ООО «Телеканал 100»[1] Страна …   Википедия

  • group-wide — UK US /ˌgruːpˈwaɪd/ adjective, adverb MANAGEMENT, HR ► affecting all parts of a business group: »The chief executive has set group wide targets to reduce costs in each of its businesses …   Financial and business terms

  • Business alliance — A business alliance is an agreement between businesses, usually motivated by cost reduction and improved service for the customer. Alliances are often bounded by a single agreement with equitable risk and opportunity share for all parties… …   Wikipedia

  • Group buying — Group buying, also known as collective buying, offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase. Origins of group buying can be traced to China[citation needed]… …   Wikipedia

  • Group decision making — (also known as collaborative decision making) is a situation faced when individuals are brought together in a group to solve problems. According to the idea of synergy, decisions made collectively tend to be more effective than decisions made by… …   Wikipedia

  • Business action on climate change — includes a range of activities relating to combatting global warming, and to influencing political decisions on global warming related regulation, such as the Kyoto Protocol. Major multinationals have played and to some extent continue to play a… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.